There is a lot of new people entering Bitcoin. If you are new here you don't understand what Bitcoin is. The most important part is to understand what bitcoin is what gives it value. Here is a bullet list of things to grasp.
I'm not writing this for an argumentation or your opinion, i'm doing this to help you understand better and AVOID BIG MISTAKES, if you get "offended" take it elsewhere. I have seen many people making the same mistakes over the years here. Real bitcoiners/hodlers are really hard on certain points like shitcoins. This is not to be mean or trash the "idea" behind the coin, but to warn you that you will likely lose all the money.
This is what you need to do and understand to survive well
Bitcoin
- Bitcoin is not an investment. You cannot think of it as gold or a stock. Instead think about it as a adoption curve for a new technology, like the radio or TV. But this is the adoption of a new currency or more accurate a store of value. Nothing we have never seen before. Hence it is not an investment it is something you use to save wealth. See the price as the adoption curve.
- You are still early.
- Bitcoin will be "stable" when adoption happends. The volatility is not an issue. Your time preference is. See 25.
- Do not sell bitcoin to "take profit". Do not have weak hands. Enter bitcoin with the minset that this is your savings now. You sell when you need to buy something in fiats.
- HODL
- Do not FOMO. Bitcoin will keep going up, within a year it might very well be above 300k USD. In 10 years it might be 10 million. But it will not be zero. If bitcoin goes to zero we have much more primal issues to deal with.
- Therefore with this knowledge DCA, buy bitcoin every month, spare some to buy during dips.
- In doubt zoom out on the chart
- You need to watch Bitcoin in logscale on charts.
- Everyone buys in at bitcoin in the price they deserve, it human nature.
- You can try help other to get into bitcoin but you will mostly fail.
- Don't tell everyone that you own bitcoin.
- Use tor, VPN etc when doing btc stuff.
- Don't fall for the phishing attempts. No one legit will ask you to enter the seed or pins.
- Bullrun did just start
- In a bullrun bitcoin does a bunch of ca 30-40% dips, it can last a few hours to weeks.
- When bitcoin goes up it goes up fast.
- If we do not enter hyperbitcoinization were mass adoption happends we will probably hit around 300k USD +- 100k isch in this bull run. This is simply because of the inbuilt properties of bitcoin. Then we might have another 80% pull back. But this time more big players are in, that doesn't have weak hands. Hence do not count on a 80% pull back.
- DO NOT TRADE BITCOIN, you will lose money
- DO NOT BUY OR TRADE SHITCOINS, you will lose money
- EVERYTHING ELSE than BITCOIN is a shitcoin.
- Bitcoin have no real competitor.
- Governments wont ban bitcoin
- One very important part of bitcoin is that its founder(s) is unknown and it needs to remain that way. Otherwise decentralization will not really work.
- Only invest what you are NOT willing to lose. +30% of all USD was created the last 10 months. Inflation is high now and it will be more. Somewhere the prices need to adjust the new money base. Even gold lost +90% of its value the last 100 year. Fiats will die as we know it.
- Always store Bitcoin in cold wallets. You control the keys.
- Never enter the seed phase into a computer.
- Assume your computer is compromised.
- When sending, double check all the data.
- When sending a lot, first send a little amount to check it works.
- The entire blockchain is broadcasted with satellites.
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Order btc wallets etc to another adress than you live at.
Bigger picture
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Most of what you learned in school is not accurate. They teached you that deflation is bad, that when something gets cheaper people will stop buy it. What a lie! No one here have experienced real capitalism. Issues blamed on capitalism is often origin from governments. Capitalism needs a free market of capital which we haven't had for over a 100 years.
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People talk about bitcoin scaling issues, increase block size etc. Thinking 5 min transaction is to much time. They fail to understand that you should not compare it to VISA. But with golds properties. You can move 100M USD in Bitcoin for 5 USD and it takes 5 min, this is madness. In any other good it takes 2-20% to move capitail and long time. Moving 100M USD in gold. That will probably cost +100K USD and take 30 days. Selling a house? Taxes, the house could be for sale for years.
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Hardest money always win in a free market.
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Bitcoin was created to remove the state from money and creating the money with most scarcity ever made. Making it the hardest money ever. This is a profound idea never used in modern world. Bitcoin will probably change the world.
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To really understand bitcoin you need knowledge about Austrian economics, psychology and history.
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Hard money like Bitcoin affects its surroundings a lot, it set the tone for society. It creates a Low time preference world, which in history have the most peace, inventions and development for human living. Because everything have to be paid its real price and therefore must be PRODUCTIVE. War is pricey. If you are out of money you cannot keep the war going, but today they print money (aka taking your money) to keep it going. Or say government social programs: Everything the government does is ineffective by nature. Running a deficit because of an non productive health care system goes to do today, many countries does it, but it doesn't under a hard money system with real capitalism, because it has to be effective and produce real value to humans. Running a decifit with a hard money and no monetary policies means increased taxes in that case. If the government taxed you the real cost for their spendings you wound not have much left. That is why we have fiats that the central bank can expand, so the real cost doesn "show".. the median salary hasn't moved for 20 years but the median home have doubled in price, health care and education too have gone up 200%. Thats where they took you the money. As the first covid subsidy you got in america, they took 18600 USD from you and gave you 1200 USD back. Since ww1 (mostly 1971) we have lived in a high time preference world that works like this. Understand inflation and the effect of low and high time preference has in society. Bitcoin changes this aspect.
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Inflation is not price increase, it is expansion of money supply. Price increase is a symptom of the disease.
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CPI is not accurate meassure for inflation. Asset and monetary inflation is much better.
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Government creates monopolies, not free markets.
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Deflation is good.
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Learn the Cantillion effect.
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You have not experienced bitcoin until you go through an entire bull and bear market.
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Go down the Bitcoin rabbit hole
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Modern Monetary Theory, keynesianism, monetarism is all wrong, they all come to different conclusions but all ends with monoplies, deficit, no free capital market and Inflation.
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Do not touch shitcoins.
Some good books to read
The Bitcoin Standard by Saifedean Ammous
When Money Dies By A Fergusson
Road to serfdom By Hayek
BItcoin hard money you cant f*ck with by Jason Williams
The Sovereign individual by William Rees Mogg
Some good podcasts
The What is Money Show by Robert Breedlove
The ALSLAX podcast
The Bitcoin standard podcast
The Pomp Podcast
The investor's podcast network
What bitcoin did podcast.
Submitted January 05, 2021 at 03:24AM by WalterHuey https://bit.ly/38dHfnd
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